Chesapeake (CHK) Bouncing; Stock Currently Up 17%

Shares of Chesapeake Energy (NYSE: CHK) are moving sharply higher this morning as commodities remain extremely volatile. The stock most recently traded at $21.55, up more than 17% from yesterday's close.

The slide in commodities which began in July was intensified at the start of October, when concerns about large-scale hedge fund redemptions were first heard around the Street. As these institutional liquidations and executive margin calls have now come-and-gone (see Ring, Ring It's the Margin Man... CEOs Don't Answer) and are mostly -- hopefully -- behind us, investors have already began speculating whether or not the commodities complex has bottomed. While this remains to be seen, traders seem to be betting that Chesapeake marked a bottom on the day its CEO was forced to sell nearly 33 million shares. On that day (Friday, October 10), shares of Chesapeake sunk to a new 52-week low of $11.99, meaning that any smart investor who bought the stock amid the panic has now already almost doubled his or her money.

Chesapeake Energy Corporation, an oil and natural gas exploration and production company, engages in the acquisition, exploration, and development of properties for the production of crude oil and natural gas from underground reservoirs.

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